The Biggest Housing Crash Of Our Lifetime Has Begun And Home Prices Set To Plummet 70% #EpicEconomist

Red flags keep popping up for the U.S. housing market. Sticker shocks, sky-high mortgage rates are leaving buyers frozen, sellers trapped. Anybody that reads charts, if they saw the charts, the long-term charts of real estate and of the stock market, like, say, the S&P 500 and NASDAQ, they would say, oh, yeah, we're in a big fifth-wave talk, and we're going to have an A-wave crash that's going to go back to the fourth-wave low. The fourth-wave low is March 2009 for stocks. You know how big a stock correction that is? 94% for the NASDAQ, 86% for the S&P 500. You know how much that is for the average house? 60% to 70%. This would make the 2008 downturn, where housing went down 34% and stocks went down 57%, look like nothing. What if I told you that we're sitting on the edge of the largest housing market collapse in American history? What if I told you that mortgage delinquencies are rising faster than any other debt category, and that we're already seeing home prices crash by 10% in major markets across Florida? What if I told you that this isn't just another correction? This is a full-blown silent crash that's getting louder by the day. Right now, at this very moment, we're witnessing something that most people don't even realize is happening. We're in the middle of a housing market crash that's unfolding in slow motion, and by the time most people wake up to what's going on, it's going to be too late. Now, before we dive into the shocking data I'm about to show you today on Epic Economist, make sure you hit that like button because the algorithm loves it when you engage early, and it helps get this critical information out to more people who need to see it. Here's what's happening right now that nobody is talking about. Existing home sales dropped 0.7% year-over-year in May, but that's nothing compared to what's happened with new home sales. They collapsed by a staggering, get this, 14% in the same month. But here's the thing that should terrify you. This is just the beginning. We're not dealing with the same crash as 2008, but that doesn't mean this one's going to be any less devastating. In fact, in many ways, this crash could be worse because it's built on three fundamental pillars that are all cracking at the same time. Interest rates, wages, and consumer confidence. Let me break this down for you. For the past 20 years, artificially low interest rates have pumped up housing demand and inflated prices to levels that are completely disconnected from reality. And I mean economic reality. Look, when Paul Volcker had to raise rates above 17% in 1980s, it caused a sharp decline in home values. In the late 80s and early 90s, the savings and loan crises left institutions completely bankrupt and homeowners underwater. Then came 2008, the worst housing crash since the Great Depression, where easy credit and poor lending standards caused home prices to drop as much as 50% in certain areas. Now we're facing what I call the pandemic bust. The Federal Reserve dropped rates to zero during the pandemic, allowing people to get mortgages as low as 2.5%. But here's where it gets insane. This happened at the same time the government injected $6 trillion in cash into the economy. Now, can you believe that? $6 trillion? That's more money than most countries' entire GDP. And we're still feeling the ripple effects five years later. But wait, there's more. Mortgage debt service ratios are through the roof. FHA borrowers are seeing delinquencies rise because of higher insurance premiums and the skyrocketing cost of maintaining a home. Some lenders are giving loans with debt-to-income ratios of 45% or even 50%. Can you believe they're doing that? This is financial suicide. But it's happening every single day. Now here's something that should make your blood run cold. Mortgage delinquencies are now growing faster than any other type of debt. In May 2025, early-stage mortgage delinquencies posted the largest month-over-month increases Think about that for a second. People usually prioritize their mortgage payments over everything else because losing your house is the ultimate financial disaster. But now, people are falling behind on their house payments first. The average American homeowner's mortgage balance has risen to $267,700. And that's up almost $7,300 from the same time last year. A 2.8% increase that represents the highest year-over-year jump compared to other loan categories. People are drowning in debt. And the water level is rising fast. Let's talk about what's really driving this crash. It's wages versus home prices. Wages versus home prices. Now, I've shown you the data before, but it bears repeating because it is the absolute core of this entire crisis. Wages have simply not kept up with inflation for at least the past 20 years, probably much longer. When home prices outpace wage growth, affordability declines, and demand dries up. That's exactly where we are right now. A house that cost $250,000 before the pandemic shot up to $400,000 in many areas. So that's a 40% increase. But here's the math that gives me hope for buyers. Prices only need to fall by 20% to bring that house down to $320,000. And when you factor in inflation, that $320,000 house in three years is actually cheaper than the $250,000 house was five years ago. You with me? That's great. Look, the home builders are waving the white flag. According to the National Association of Home Builders, they're slashing prices at the highest rate in three years. Their confidence survey came in at 33 in July. Any reading below 50 is considered negative sentiment. One year ago, it was at 41. Builder confidence has been declining for over a year and has been in negative territory for 15 straight months. But here's the kicker. Get this. 38% of home builders cut their prices in July. That's the highest amount since they began tracking this data in 2022. The average price drop was 5%, but I've seen examples where builders have cut prices by 15%, 20%, sometimes 25% cumulatively to move inventory. But it's not just about the builders. Active home listings are up 29% year over year. Homes are sitting on the market for an average of 53 days, almost two months, compared to houses that used to sell in the snap of a finger. We've had 15 straight months of slower sales volume. People are saying no to buying houses at these ridiculous prices. Out of the 50 largest metro areas that Realtor.com tracks, 22 of them, that's almost half, have inventory levels that now exceed what we saw before the pandemic. Denver leads the pack with inventory levels 100% higher than pre-pandemic. Austin is up 69%. Seattle, 61%. Dallas, Fort Worth, 56%. Now, these aren't small markets. These are major metropolitan areas with millions of people. About 20% of home sellers cut their listing prices in May 2025, the highest share in nine years, according to Realtor.com. Sellers are panicking, and rightfully so. They're being forced to cut prices or offer mortgage rate buy-downs, just like the builders are doing. Even the housing market bulls are changing their tune. Mark Zandi from Moody's, who I've quoted multiple times, saying everything was fine with the housing market, recently posted that home sales are uber-depressed, and the housing market is, quote, flashing bright red warning signs. When the bulls start running scared, you know something big is coming. This isn't just about housing, it's about the entire economy. Without home sales, appliance sales suffer, furniture sales tank, real estate agents and home inspectors lose work, home builders lay off workers. The United States has around 8 million construction workers who help build $2 trillion worth of residential and commercial structures each year. Construction employment growth has slowed to 1.5% year over year, and that's nearly half the rate from last year. So, here's what you need to do to protect yourself. First, if you don't have six months of cash reserves and a solid income, you should not be buying a house. Period. Forget about the 0% down or 3.5% down programs that leave you with nothing in the bank after purchase. That is a recipe for disaster. If you are buying, stick with a fixed-rate mortgage, 30-year or 15-year fixed with at least 20% down. Avoid adjustable-rate mortgages like the plague, even though lenders are pushing them because they're the only way people can afford payments right now. Stay diversified. Don't put your entire net worth into your home. Have stocks, have precious metals, bitcoin, other assets. Get professional advice for your particular situation and be prepared for the worst-case scenario. Expenses will continue rising while your home value continues falling for the next several years. The writing is on the wall. We're not just heading for a housing correction. We're in the early stages of what could certainly be the worst housing market in American history. The question isn't if it's going to happen, it's how bad it's going to get and how long it's going to last. The smart money is already positioning for what's coming. The question is, are you going to be ready or are you going to be another casualty of the greatest housing crash of our lifetime? Thank you for watching. Please pass this on to friends and family. Subscribe and watch out for our next report.